Posted on 04/05/2024 11:20:27 PM PDT by Libloather
The Social Security Administration (SSA) is capping clawbacks of benefit overpayments at 10% of benefits checks instead of 100% after being criticized for draconian repayment plans that left some beneficiaries destitute.
Social Security Commissioner Martin O'Malley said in a statement that the agency would cease "the heavy-handed practice of intercepting 100% of an overpaid beneficiary's monthly Social Security benefit" if they failed to respond to a demand for repayment. Additionally, the Social Security Administration will extend repayment plans to 60 months, up from its limit of 36 months, giving recipients an additional two years to repay the money.
The changes come after reports at the end of 2023 indicated that some Social Security and Supplemental Security Income (SSI) recipients had seen their benefits suspended or were assessed overpayments due to COVID-19 stimulus checks, worth up to $3,200 per individual or $6,400 per married couple. However, these payments, made between April 2020 and July 2021, were supposed to be independent of Social Security benefits.
"For 88 years, the hard-working employees of the Social Security Administration have strived to pay the right amount, to the right person, at the right time," O'Malley said. "And the agency has done this with a high degree of accuracy over a massive scale of beneficiaries. But despite our best efforts, we sometimes get it wrong and pay beneficiaries more than they are due, creating an overpayment.
"When that happens, Congress requires that we make every effort to recover those overpaid benefits," O'Malley continued. "But doing so without regard to the larger purpose of the program can result in grave injustices to individuals, as we see from the stories of people losing their homes or being put in dire financial straits when they suddenly see their benefits cut off to recover a decades-old overpayment...
(Excerpt) Read more at foxbusiness.com ...
Taxes on your taxes.
In some cases, they end up waiving the entire overpayment and just carry on; If someone is terminal, disabled, elderly with no other resources, no hope of ever repaying it.
I used to work at SS. (2014-2016)
Do people here recommend taking SSI as soon as you turn 62, or wait until you’re 70 so the payments are larger (assuming you don’t need the money right away).
I have a personal finance guru coworker who advises taking it at 62, investing it in an S&P 500 Index fund and let the money grow at 11% avg annualized return vs. the 5% SSI rate.
If you are still working, my view is take the money now, and increase your 401K deduction by the same amount. You will see a higher total return.
Plenty of options there. If someone has a plan to do it at 62, go for it. That lower percentage will be locked in forever, though. I’m watching a current worker go the distance - 70 years old will pay out higher than the 100% at age 67. It all depends on circumstances.
Actually it does not get locked in if you are still working. You get one “do over” if you think you made a mistake.
My family typically does not maintain a long life past 70. Both my parents died at 60, grandmother at 75, aunt at 73. But they also lived hard laborious lives. Not saying mine has not been, but hasn’t been like theirs.
I can submit my application to start drawing in November. Most I have read that in order to do this it is best to have a secondary source of income to draw from, be ready to reduce spending, etc. I have a small business and am actually looking to hire and then cut back on my involvement in the business.
Eventually, it may be sold when I am 67. So their is a plan in place. In the meantime draw from SS and invest for later use.
But the truth is ...I’m tired and worn out. I have done pretty much all I have wanted to do in my working life. I am mentally ready to move on to enjoy the few years I likely have left. God willing.
The lifetime benefit from Social Security is calculated to be the same regardless of what age you start receiving benefits. So someone starting at age 62 isn’t getting anything more or less, over the lifetime of payments, than someone starting at age 70. That being the case a person might as well start at age 62.
I just signed up for SSI at 66. I will not receive my first payment till September. So if you want it at 62, good luck!
Fine, ya can't borrow thousands over 60 months at 2%, anywhere
It’s a crap shoot. I read it takes 14 years to make up the difference between taking it at 62 vs 66. What’s your family history health wise. Then again you can drop dead anytime or be hit by a bus.
My spouse took it at 62 needed the money. I waited til 65 when my pensions started. I’m very glad I waited.
Last time I looked, the crossover point is around age 84. If you die before then it was best to take the smaller payment early. If you die later it is best to wait to take it. Whether you will live to be 84 is a guess based on your health and family history.
“I have a personal finance guru coworker who advises taking it at 62, investing it in an S&P 500 Index fund and let the money grow at 11% avg annualized return vs. the 5% SSI rate.”
This is the correct answer!
I’m a dolt so don’t understand.
If I was making $100,000/year and was 62 would I get any SS if I started taking at age 62?
“62 or wait until 70”
Most folks take it as soon as possible.
I waited until 70 because of my specific situation:
—Parents lived well into their 90s and I am in excellent health so my life expectancy is on the high end
—My wife made a lot less than I do so I wanted to max her benefit—both while I was alive and after I died
—I could afford to wait
—Waiting offered a pre-COLA 8% extra benefit for each year of waiting
—I am betting the broken system will continue to muddle through, probably with high inflation, for a couple of decades
I totally get it that other folks may see things differently.
One market crash and “finance gurus” hide under their beds crying for their mamas.
Lol.
I thought that you cannot take it at 62 if you make more than $18,000 per year.
In case anybody was wondering, this IS the same Martin O’Malley who was Maryland governor from 2007 to 2015.
Americans weigh in on whether a comfortable retirement is possible in today’s economy
Markets fluctuate, long term investors don’t worry about it too much. That said, everyone has to assess their own comfort/risk level. There is no perfect investment.
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